2 TSX Stocks That Could Benefit if the Loonie Keeps Climbing

A stronger loonie can change the market’s mood fast. When the Canadian dollar climbs, investors may want to look at companies that benefit from lower imported costs, stronger domestic spending, or cheaper U.S.-dollar expenses. The catch, of course, is that a higher loonie can hurt exporters that earn heavily in U.S. dollars. So, the sweet spot may come from Canadian companies with local demand, flexible pricing, and costs that could ease if the currency keeps firming. That’s why we’re looking at these two stocks on the TSX today.

CJT

Cargojet (TSX:CJT) could fit that setup in an interesting way. Cargojet stock runs time-sensitive air cargo services across Canada, along with charter and aircraft leasing work. It’s not exactly a glamorous business, but it’s essential. E-commerce, overnight shipping, and business logistics all depend on companies that can move goods quickly. If the loonie keeps climbing because Canada’s economy looks steadier, Cargojet stock could benefit from healthier shipping demand and possibly lower costs tied to aircraft, fuel, or maintenance expenses priced in U.S. dollars.

Recent news centred on resilience rather than explosive growth. Cargojet stock reported first-quarter 2026 revenue of $254.7 million, up 1.9% from last year. Charter revenue climbed 26.3%, while domestic revenue stayed flat. Furthermore, domestic strength gives the company a steadier base if global trade remains messy. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $81.9 million, up slightly from last year, with a strong 32.2% margin.

The weaker spot was profit. Net earnings fell to $4.1 million from $48 million last year, mainly because of lower gross margin and higher costs. So, this isn’t a perfect story. Still, valuation looks more reasonable after the stock’s pullback. Cargojet stock trades at about 14.4 times trailing earnings, with a market cap near $1.12 billion at writing. If demand improves and costs stabilize, Cargojet stock could have room to recover. Yet the risk is clear, as air cargo remains sensitive to trade, fuel, and economic confidence.

CAS

Cascades (TSX:CAS) offers a different way to think about a stronger loonie. The company makes packaging, tissue, and recovery products, with operations across North America. A higher Canadian dollar can help when a company buys materials, equipment, or services tied to U.S. dollars. It can also support consumer and business confidence at home. For Cascades, the bigger story is simple: if the economy avoids a rough landing, companies still need boxes, packaging, paper products, and recycled materials.

Over the last year, Cascades has been more of a turnaround story. The company sold assets, focused on efficiency, and worked to bring debt down. Its 2025 results showed progress. Sales rose to $4.78 billion from $4.70 billion in 2024. Operating income jumped to $235 million from $95 million. Adjusted EBITDA rose to $576 million from $501 million. That’s a solid improvement for a company that has dealt with inflation, weaker volumes, and pressure in tissue.

The balance sheet also improved. Net debt fell to $1.9 billion from $2.1 billion, and leverage dropped to 3.3 times adjusted EBITDA from 4.2 times. That gives Cascades a cleaner setup heading into 2026. The stock recently traded at 15.5 times earnings at writing. That’s not demanding if earnings keep improving. However, investors still need patience. Packaging volumes can soften quickly, tissue execution has been uneven, and energy or transportation costs can bite.

Bottom line

If the loonie keeps climbing, investors shouldn’t just chase any Canadian stock. They should look for companies where a stronger currency could support costs, confidence, or balance-sheet strength. Cargojet stock brings a more cyclical logistics angle, while Cascades offers a value-driven packaging turnaround. And both could bring in a nice income stream with $7,000 at writing.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTCAS$11.00636$0.48$305.28Quarterly$6,996.00CJT$82.2485$1.54$130.90Quarterly$6,990.40

Neither comes without bumps, yet both could benefit if a firmer Canadian dollar signals a sturdier economy rather than a short-term currency move.

The post 2 TSX Stocks That Could Benefit if the Loonie Keeps Climbing appeared first on The Motley Fool Canada.

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More reading

• 3 Canadian Stocks to Buy Before Trade Talks Shake the Market
• 3 Canadian Stocks That Look Undervalued and Worth Buying Right Now
• 5 TSX Dividend Stocks I’d Move Quickly to Buy on Any Market Pullback

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Cargojet. The Motley Fool has a disclosure policy.